Don’t take national IDs as collateral, RDC warns moneylenders
‘’Confiscating identification documents, such as national IDs, from borrowers under the guise of using them as loan collateral should cease’’
Buliisa: The Buliisa Resident District Commissioner, Mr. Longino Bahebwe Byagagaire, has warned moneylenders against confiscating national IDs as collateral.
He says the vice hinders borrowers from using their national IDs for other purposes. Bahebwa therefore directed the moneylenders to desist from confiscating national IDs as collateral.
‘’Confiscating identification documents, such as national IDs, from borrowers under the guise of using them as loan collateral should cease’’
The development followed an outcry from locals over the continued practice by micro-loan lenders who seize their IDs, depriving them of the privilege to use them for identification purposes.
Speaking to this publication, Bahebwe revealed that, within the district, it is a habit among money lenders to give out micro-loans and confiscate national identification cards, saying the habit affected the recently concluded NRM register exercise in the district.
He disclosed that all moneylenders confiscating national IDs are doing it illegally since it’s against the law.
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